7.5% VAT on Bank Transfers: Why your ₦100 fee is now ₦107.5

There is a massive trend happening right now regarding VAT on USSD and Mobile Transfers (effective January 19, 2026). Banks like Moniepoint and others are sending out notices that every transfer will now carry a 7.5% VAT on the service fee.

Is VAT now 10% in Nigeria?

No, it's still 7.5%, but the government is widering the net. This isn't a "price hike" by your bank—it's a direct order from the new NRS (Nigeria Revenue Service).

How much will I pay?

If you're sending money and the bank usually charges you ₦100, you will now see ₦107.5 deducted from your balance. The extra ₦7.5 goes straight to the national treasury.

Does it affect USSD (*945# etc)?

Yes. Every single digital touchpoint—Mobile Apps, USSD codes, and even your neighborhood PoS lady—must now collect this VAT on their service fees.

Quick VAT Checker

Enter the bank charge (e.g. ₦10, ₦50, ₦100) to see the 7.5% VAT hit.

Bank Service Fee (₦)

7.5% VAT (NRS)₦0.00

New Total Charge₦0.00

This VAT is only on the bank's fee, not your transfer amount. NRS takes this portion automatically starting Jan 19, 2026.

Street Tip: If you're a business owner doing 1,000 transfers a month, these charges add up to ₦7,500+ extra. Use our Invoice Generator to make sure you're billing your clients enough to cover these costs!